Maxim Integrated Products (NASDAQ:MXIM) and Viavi Solutions (NASDAQ:VIAV) are both computer and technology companies, but which is the superior business? We will compare the two companies based on the strength of their risk, profitability, dividends, institutional ownership, valuation, earnings and analyst recommendations.
Risk and Volatility
Maxim Integrated Products has a beta of 1.37, meaning that its share price is 37% more volatile than the S&P 500. Comparatively, Viavi Solutions has a beta of 0.98, meaning that its share price is 2% less volatile than the S&P 500.
Earnings & Valuation
This table compares Maxim Integrated Products and Viavi Solutions’ gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Maxim Integrated Products||$2.48 billion||6.36||$467.31 million||$2.71||21.28|
|Viavi Solutions||$880.40 million||3.44||-$46.00 million||$0.34||38.91|
Maxim Integrated Products has higher revenue and earnings than Viavi Solutions. Maxim Integrated Products is trading at a lower price-to-earnings ratio than Viavi Solutions, indicating that it is currently the more affordable of the two stocks.
Maxim Integrated Products pays an annual dividend of $1.84 per share and has a dividend yield of 3.2%. Viavi Solutions does not pay a dividend. Maxim Integrated Products pays out 67.9% of its earnings in the form of a dividend. Maxim Integrated Products has raised its dividend for 9 consecutive years.
This table compares Maxim Integrated Products and Viavi Solutions’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Maxim Integrated Products||27.36%||40.16%||17.47%|
This is a breakdown of recent ratings and price targets for Maxim Integrated Products and Viavi Solutions, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Maxim Integrated Products||1||11||5||0||2.24|
Maxim Integrated Products presently has a consensus target price of $61.35, indicating a potential upside of 6.39%. Viavi Solutions has a consensus target price of $13.93, indicating a potential upside of 5.28%. Given Maxim Integrated Products’ higher possible upside, equities analysts clearly believe Maxim Integrated Products is more favorable than Viavi Solutions.
Insider & Institutional Ownership
93.4% of Maxim Integrated Products shares are held by institutional investors. Comparatively, 92.5% of Viavi Solutions shares are held by institutional investors. 0.9% of Maxim Integrated Products shares are held by insiders. Comparatively, 0.5% of Viavi Solutions shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Maxim Integrated Products beats Viavi Solutions on 13 of the 17 factors compared between the two stocks.
About Maxim Integrated Products
Maxim Integrated Products, Inc. designs, develops, manufactures, and markets a range of linear and mixed-signal integrated circuits in the United States, China, the rest of Asia, Europe, and internationally. The company also provides a range of high-frequency process technologies and capabilities for use in custom designs. It serves automotive, communications and data center, computing, consumer, and industrial markets. The company markets its products through a direct-sales and applications organization, as well as through its own and other unaffiliated distribution channels. Maxim Integrated Products, Inc. was founded in 1983 and is headquartered in San Jose, California.
About Viavi Solutions
Viavi Solutions Inc. provides network test, monitoring, and assurance solutions to communications service providers, enterprises, network equipment manufacturers, civil government, military, and avionics customers worldwide. The company operates through Network Enablement, Service Enablement, and Optical Security and Performance Products segments. The Network Enablement segment offers testing solutions that access the network to perform build-out and maintenance tasks. This segment provides solutions that include instruments, software, and services to design, build, activate, certify, troubleshoot, and optimize networks. It also offers support and professional services, such as repair, calibration, software support, and technical assistance for the products; and system integration projects, including project management, installation, and implementation, as well as product and technology training, and consulting services. The Service Enablement segment provides embedded systems and enterprise performance management solutions for communication service providers, enterprises, and cloud operators with visibility into network, service, and application data. Its solutions include instruments, microprobes, and software, which monitor, collect, and analyze network data to reveal the actual customer experience and to identify opportunities for new revenue streams and network optimization. The Optical Security and Performance Products segment offers optical products for anti-counterfeiting, government, industrial, automotive, and consumer electronic markets, including 3D sensing applications. The company was formerly known as JDS Uniphase Corporation and changed its name to Viavi Solutions Inc. in August 2015. Viavi Solutions Inc. was founded in 1979 and is headquartered in San Jose, California.
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